Plexus Corp. (PLXS): Business Model Canvas [Dec-2025 Updated]

You're digging into how Plexus Corp. actually makes its money, especially after seeing their fiscal 2025 results, and honestly, their business model is built on complexity and trust, not just assembly lines. As someone who spent a decade mapping out these operational blueprints, I can tell you their success hinges on serving demanding sectors like Healthcare and Aerospace/Defense, which together made up over half of their $4.033 billion in net sales last year. They aren't chasing simple volume; they are focused on end-to-end product realization for mission-critical gear, which is why they hit a 14.6% Return on Invested Capital (ROIC) while managing a global footprint of 26 facilities. Want to see the nine building blocks-from their strategic supplier partnerships to how they generate revenue from sustaining services-that underpin this high-value manufacturing engine? Keep reading below.

Plexus Corp. (PLXS) - Canvas Business Model: Key Partnerships

You're looking at how Plexus Corp. structures its external relationships to drive its complex manufacturing business, which is crucial given its focus on highly complex products in demanding regulatory environments. These partnerships are the backbone supporting their global operational footprint of 26 facilities and a team exceeding 20,000 members.

Strategic supplier relationships for global component sourcing

Plexus Corp. actively works to secure its supply chain by leveraging what it calls Innovative Sourcing. This means going beyond simple procurement to use deep market intelligence and strategic supplier relationships to lock in optimal components early in the design phase. They proactively look into emerging technologies and alternative materials to both lower costs and reduce future supply risks. This focus on supply chain health is reflected in their working capital management; for fiscal 2025, the team drove the gross inventory balance down by $82 million compared to the end of fiscal 2024. This suggests strong, collaborative agreements are in place to manage material flow efficiently.

Technology partners for advanced manufacturing and automation

The company partners with technology providers to embed advanced capabilities into its operations. For instance, Plexus Corp. announced a partnership with Arch Systems to gain access to cutting-edge Industry 4.0 capabilities. Furthermore, the strategic contract manufacturing partnership secured with Evolv Technology in November 2025 specifically aims to combine Evolv's product expertise with Plexus's design, supply chain, and manufacturing capabilities to deliver production and distribution at scale. This partnership is designed to create long-term cost-saving opportunities via Plexus's global manufacturing scale and procurement efficiencies.

Long-term, collaborative customer partnerships for co-development

The success of Plexus Corp. is heavily tied to securing and expanding relationships with market-leading and disruptive global companies across its key sectors: Aerospace/Defense, Healthcare/Life Sciences, and Industrial. These are not just transactional sales; they are deep engagements where Plexus provides solutions across the entire product lifecycle. The strength of these collaborations is quantified by the volume of new business secured:

These wins show consistent customer confidence. To highlight the quality of these relationships, Plexus Corp. received GE Vernova's Supplier Innovation Award in October 2025 for supporting a program transition ahead of schedule. Still, customer concentration remains a factor, with the top 10 customers comprising 48% of revenue in the third quarter of fiscal 2025.

Logistics and freight carriers for global supply chain efficiency

While specific carrier names aren't detailed, the scale of Plexus Corp.'s global operations-serving customers worldwide from facilities in the Americas (AMER), Asia-Pacific (APAC), and Europe, Middle East and Africa (EMEA)-necessitates robust logistics partnerships. The partnership with Evolv Technology explicitly mentions providing a scalable platform to support global expansion through Plexus's international production network, which relies on efficient freight movement. Furthermore, Plexus Corp. achieved its best cash cycle result in the past five years for fiscal 2025, indicating that coordination with logistics providers is highly effective in managing inventory and payment terms.

Academic institutions for talent pipeline and R&D collaboration

To support its need for specialized talent, Plexus Corp. engages with educational bodies. A concrete example is the agreement signed with Michigan Tech on September 30, 2025, which directly addresses building a talent pipeline. This type of relationship helps ensure a steady flow of skilled individuals capable of supporting the company's focus on complex product design and manufacturing.

• Secured 141 manufacturing wins in FY2025.
• FY2025 non-GAAP operating margin expansion of 40 basis points year-over-year.
• FY2025 free cash flow generation totaled $154 million.
• Team members completed over 32,000 volunteer hours in fiscal 2025.

Plexus Corp. (PLXS) - Canvas Business Model: Key Activities

You're looking at the core engine of Plexus Corp. (PLXS) for late 2025. The key activities here aren't just about building things; they're about managing complexity across the entire product life from concept to end-of-life support, all while hitting specific financial targets. This is where the real value capture happens.

High-mix, low-to-mid volume complex electronic manufacturing is the bread and butter. This isn't about churning out billions of identical widgets; it's about specialized, intricate work for demanding industries. For fiscal 2025, the revenue mix shows where this complex manufacturing focus lands:

The total net sales for fiscal 2025 hit $4,033.0 million, with a gross margin improving to 10.1% from 9.6% in fiscal 2024, which tells you they are getting better at managing the cost of these complex builds. This mix of high-value sectors is central to their activity.

Full product lifecycle services: design, NPI (New Product Introduction), and sustaining is the second major activity. They aren't just a late-stage manufacturer; they are involved from the start. This integrated approach helps lock in business for the long haul. The focus on engineering solutions engagements drove increased wins for fiscal 2025, and their sustaining services team achieved record wins for that fiscal year, showing the value of supporting products post-launch.

Global supply chain management and risk mitigation is a constant, high-priority activity. You have to manage a global footprint to serve those sectors. For fiscal 2025, they generated $154.0 million in free cash flow, which is a direct result of managing working capital effectively, like reducing gross inventory by $82 million compared to fiscal 2024. That's supply chain discipline in action.

Driving operational efficiency to maintain a 5.9% non-GAAP operating margin is a hard financial target they actively work toward through their key activities. This margin is the benchmark for profitability after accounting for things like stock-based compensation. The team delivered 40 basis points of non-GAAP operating margin expansion in fiscal 2025, landing at that 5.9% figure for the full year. Furthermore, they produced a Return on Invested Capital (ROIC) of 14.6% against a weighted average cost of capital (WACC) of 8.9%, resulting in an economic return of 5.7%.

Securing new business is the forward-looking activity that fuels future revenue. For fiscal 2025, the go-to-market team was busy:

• Won 141 manufacturing programs.
• These wins represent $941 million in annualized revenue when fully ramped.
• They also saw success in diversifying engineering solutions engagements.

Honestly, landing that volume of future revenue is what keeps the whole operation moving.

Plexus Corp. (PLXS) - Canvas Business Model: Key Resources

You're looking at the core assets Plexus Corp. uses to deliver its value proposition. Honestly, the physical footprint and the people are the foundation here.

The global manufacturing footprint is spread across three main geographic segments: AMER, APAC, and EMEA, totaling 26 facilities worldwide. This physical presence supports a team of over 20,000 skilled members as of September 27, 2025.

Financially, the balance sheet strength is evident in the fiscal 2025 performance. For the full fiscal year ended September 27, 2025, Plexus Corp. generated $154.0 million in free cash flow, calculated as $249.2 million in cash flows provided by operations less $95.2 million in capital expenditures. This result exceeded earlier projections of $100 million.

The intellectual capital is deeply tied to navigating complex regulatory landscapes. Creating complex products for highly regulated markets, like Aerospace/Defense and Healthcare/Life Sciences, is central to the Plexus Corp. mission. This expertise means their processes are subject to strict regulatory, quality, and contractual requirements from their end customers.

To support this, Plexus Corp. invests in advanced manufacturing technology. For instance, they are bolstering their Industry 4.0 initiative by deploying the ArchFX platform across their SMT lines.

Here's a quick look at the key operational and financial metrics as of late 2025:

The geographic distribution of these facilities and the sectors they serve are critical to their operational model:

• Manufacturing Regions: AMER, APAC, and EMEA
• Key Market Sectors Served: Aerospace/Defense, Healthcare/Life Sciences, and Industrial
• Technology Focus: Industry 4.0 initiatives and automation investments

Plexus Corp. (PLXS) - Canvas Business Model: Value Propositions

You're looking at what Plexus Corp. actually delivers to its customers that makes them stick around. It's not just about making things; it's about managing the entire journey for products that absolutely cannot fail.

End-to-end product realization for complex, mission-critical products

Plexus Corp. takes on the hard stuff, from the initial design right through to getting the product into the field and keeping it running. This means they handle the engineering, the manufacturing setup, and the ongoing service for demanding electronics. For fiscal 2025, the commercial team secured 141 manufacturing programs, which translates to $941 million in annualized revenue when those programs are fully ramped into production. That's a lot of complex work being managed. For example, in the third quarter of fiscal 2025 alone, they won 41 programs representing $250 million in annualized revenue. That agility in winning new, complex business is a core value.

Expertise in demanding, regulated markets like medical and defense

The value here is the trust built by operating successfully in environments where failure isn't an option. You hire Plexus Corp. because they already know the quality standards and regulatory hurdles for things like advanced medical devices or defense systems. This expertise de-risks the entire product lifecycle for you, meaning less time spent on compliance validation.

Speed and flexibility in New Product Introduction (NPI)

Getting a new product from design to volume production quickly is crucial, and Plexus Corp. focuses heavily on making that transition smooth. Their working capital execution shows this focus, with the fiscal fourth quarter cash cycle coming in at 63 days, which was the best result delivered in the past five years. This efficiency in managing inventory and payables/receivables directly translates to faster NPI timelines for you. Compare that to the first quarter of fiscal 2025, where the cash cycle was 68 days.

Global scale with regional flexibility for supply chain resilience

Plexus Corp. offers a global footprint, which is key for managing geopolitical risk and ensuring you have supply options close to your end markets. They provide the scale of a large manufacturer but structure their operations to offer regional flexibility, which helps keep the supply chain steady even when global logistics get choppy. This structure supports their overall revenue, which reached $4.033 billion for fiscal 2025.

Superior capital efficiency, achieving a 14.6% ROIC in fiscal 2025

This is where the financial proof of their operational excellence really shows up. They are generating excellent returns on the money invested in the business. For the full fiscal year 2025, Plexus Corp. achieved a Return on Invested Capital (ROIC) of 14.6%. That is a significant number, especially when you compare it to their weighted average cost of capital (WACC) for the year, which was 8.9%. This difference resulted in an economic return of 5.7% above their cost of capital. Furthermore, they generated $154.0 million in free cash flow for fiscal 2025, showing they convert those strong returns into actual cash.

Here's a quick look at the key financial performance indicators for fiscal 2025:

The value proposition is cemented by their ability to drive these financial results while simultaneously winning new business:

• Won 141 manufacturing programs in fiscal 2025.
• Achieved a fiscal Q4 2025 cash cycle of 63 days (best in five years).
• Delivered non-GAAP diluted EPS of $7.43 for fiscal 2025.

Finance: draft 13-week cash view by Friday.

Plexus Corp. (PLXS) - Canvas Business Model: Customer Relationships

You're looking at how Plexus Corp. keeps its biggest clients close, which is key since their business relies on complex, long-term manufacturing agreements. It's not about quick, one-off sales; it's about sticking around for the entire product life.

Dedicated, long-term strategic partnerships, not transactional sales

Plexus Corp. serves a base of approximately 190 customers in fiscal 2025, showing a commitment to a broad base, though the top tier is significant. The company explicitly states that no single customer accounted for over 10% of sales in fiscal 2025, which suggests a deliberate strategy against over-reliance, even as they deepen relationships with key players. The CEO noted in late 2025 that the year was marked by delivering a value proposition that created the opportunity to expand customer relationships and gain market share. This partnership approach is necessary because Plexus Corp. partners with customers to design, manufacture, and service highly complex products in demanding regulatory environments, like life-saving medical devices or mission-critical aerospace components.

The concentration of revenue from the largest customers shows where the deepest relationships lie, even with that diverse base:

High-touch, collaborative engagement throughout the product lifecycle

The engagement model is inherently high-touch because the work involves complex product lifecycles. This isn't just assembly; it's about being involved from the start. For instance, in fiscal 2025, the team secured 141 manufacturing wins, representing $941 million in annualized revenue, which shows continuous engagement on new product introductions. The focus is on helping create products that build a better world, which requires deep, sustained collaboration.

• Partnering to design, manufacture, and service complex products.
• Focus on decreasing time to market for new product introductions.
• Sustaining services team achieved record wins for fiscal 2025.

Account management focused on share gain and relationship expansion

Account management isn't just about service delivery; it's about growth within the existing customer footprint. The Q4 2025 results specifically mentioned expansion of share with existing health care, life sciences, and industrial customers. This focus on share gain is a direct measure of relationship health and management effectiveness. The company is clearly targeting deeper penetration rather than just winning new logos, though new wins are also strong, with 28 new manufacturing programs won in Q4 2025 alone, worth $274 million annually when fully ramped.

Proactive communication to manage supply chain and program transition risks

Managing complex electronics manufacturing involves inherent risks, especially around supply chain volatility and moving products from design to full volume production. The company acknowledges risks related to customer and other delays, start-up costs, and the operating disruption in transitioning programs. Proactive communication helps mitigate these, as seen when the team's ability to support late quarter demand upside from semi cap and energy customers offset minor delays in program transition within the aerospace and defense sector in Q4 2025. This suggests active, real-time dialogue about potential roadblocks.

Deep integration with customer engineering and supply teams

The nature of the service-designing and manufacturing highly complex products-demands integration. Plexus Corp. helps customers across their solutions, including a record result in Aerospace and Defense engineering solutions engagements for fiscal 2025. This level of integration means their teams are working side-by-side with customer engineering groups on product realization and with supply teams to ensure continuity. This deep embedding is what allows them to secure wins that expand share, as it builds trust in their execution capability, which is critical when you consider the company delivered a Return on Invested Capital (ROIC) of 14.6% in fiscal 2025.

Plexus Corp. (PLXS) - Canvas Business Model: Channels

Plexus Corp. deploys a global, integrated channel strategy focused on deep engagement with Original Equipment Manufacturers (OEMs) across the product lifecycle. This approach relies heavily on direct interaction between the customer and Plexus Corp.'s technical teams.

The direct sales and engineering teams function as an extension of the customer's own resources. Plexus Corp. offers a flexible engagement model, allowing them to step in for full product development from ideation or for tactical issue resolution, supporting customer engineering teams to the degree needed for the specific project. This direct technical interface is key to securing new business, evidenced by the 141 manufacturing wins in fiscal 2025, which are estimated to contribute $941 million in annualized revenue once fully ramped. For the fourth quarter of fiscal 2025 alone, 28 manufacturing program wins were announced, estimated to contribute $274 million in annualized revenues upon full ramp.

The physical channel infrastructure supporting these engagements is extensive and geographically distributed:

• Global team of over 20,000 members.
• 26 facilities operating across three primary geographic segments.
• Focus on serving market-leading and disruptive global companies in Aerospace/Defense, Healthcare/Life Sciences, and Industrial sectors.

Operational performance is measured and managed across the three core regional operations centers:

Overall fiscal 2025 revenue reached $4.033 billion, a 1.8% increase from fiscal 2024. The top 10 customers represented 49% of net revenues for both fiscal Q4 2025 and the full fiscal year 2025.

Aftermarket services and sustaining support are provided directly to customers, forming a critical part of the long-term channel relationship. The company noted that its sustaining services team achieved record wins for fiscal 2025, indicating strong uptake in this direct support channel. This focus on the full product lifecycle contributes to Plexus Corp.'s financial efficiency, as the fiscal 2025 Return on Invested Capital (ROIC) was 14.6%, exceeding the weighted average cost of capital (WACC) of 8.9% by 570 basis points.

Specific locations include manufacturing and service facilities across these regions, such as:

• North America: Appleton, Boise, Guadalajara, Neenah (Global Headquarters).
• APAC: Bangkok, Haining, Penang (multiple sites), Xiamen (multiple sites).
• EMEA: Kelso (UK), Livingston (UK), Oradea (Romania).

Plexus Corp. (PLXS) - Canvas Business Model: Customer Segments

You're looking at where Plexus Corp. actually makes its money, which is always the best place to start analyzing any business. For fiscal 2025, Plexus Corp. generated total net sales of $4,033.0 million. The customer base is clearly segmented across three primary market sectors, showing a fairly balanced revenue mix, though leaning slightly toward the Industrial side.

Here is the breakdown of net sales by market sector for the full fiscal year 2025:

The Industrial sector was the largest contributor, accounting for 43% of net sales, followed very closely by Healthcare/Life Sciences at 40%. The smallest segment, Aerospace/Defense, made up the remaining 17% of fiscal 2025 revenue.

When you look at customer concentration, you see that Plexus Corp. serves a diverse group, reporting they served approximately 190 customers during fiscal 2025. Still, a significant portion of the total revenue comes from the very top tier of clients. For the full fiscal year 2025, the top 10 customers accounted for 49% of revenue, which was actually up 1 percentage point from fiscal 2024. This concentration level is something to keep an eye on, even though it's spread across ten different large, market-leading OEMs.

To summarize the customer profile based on the latest figures:

• Total customers served in fiscal 2025: approximately 190.
• Top 10 customers represented 49% of total fiscal 2025 revenue.
• The Industrial segment saw its Q4 revenue increase 2% year-over-year to $461 million.
• Healthcare/Life Sciences Q4 revenue grew 2.2% year-over-year to $424 million.
• The company secured 28 new manufacturing program wins in the fourth quarter of fiscal 2025.

Finance: draft a sensitivity analysis on revenue if the top 10 customer concentration were to drop by 5 percentage points by Friday.

Plexus Corp. (PLXS) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Plexus Corp.'s operations as of late 2025. Honestly, for a company in electronics manufacturing services, the cost structure is heavily weighted toward the direct costs of production. Here's the quick math on where the money goes based on the fiscal year 2025 results.

High variable costs dominated by Cost of Goods Sold (COGS)

The single largest cost component is the Cost of Sales, which is the direct cost of producing the electronics assemblies for customers. For the twelve months ended September 27, 2025, the Cost of Sales was $3,626,452 thousand against Net Sales of $4,032,966 thousand. This means COGS consumed approximately 89.92% of every revenue dollar. This high percentage confirms that Plexus Corp.'s cost structure is variable and directly tied to production volume.

Significant material and component procurement costs

Within that massive Cost of Sales figure, material and component procurement is the dominant driver. While the exact split isn't itemized in the condensed statements, the nature of the business-designing and manufacturing complex products for Aerospace/Defense, Healthcare, and Industrial sectors-demands substantial investment in the underlying electronic parts. Fluctuations in global component pricing definitely impact Plexus Corp.'s gross margin directly.

Labor and overhead costs for a global team of over 20,000

Plexus Corp. supports its global operations with a substantial workforce. As of September 27, 2025, the company employed 20,000 people across its AMER, APAC, and EMEA segments. Labor costs are embedded within both Cost of Sales (direct labor) and Operating Expenses (indirect labor). The overall operating efficiency is reflected in the GAAP Operating Margin for fiscal 2025, which stood at 5.0%.

The fixed and semi-fixed overhead associated with this global footprint, including facility costs and indirect labor, contributes to the overall cost base. You can see the Selling and Administrative Expenses (SG&A) were $199,460 thousand for the full fiscal year 2025, which is about 4.95% of total revenue. That SG&A line includes a significant portion of the corporate and support team overhead.

Capital expenditures for facility and equipment upgrades ($95.2 million in fiscal 2025)

To maintain capability in demanding regulatory environments, Plexus Corp. must continually invest in its manufacturing footprint. For the fiscal year ended September 27, 2025, the company spent $95.2 million on capital expenditures. This investment supports facility and equipment upgrades necessary for new program ramps and technology adoption. For context, cash flows provided by operations were $249.2 million, meaning CapEx consumed 38.2% of operating cash flow for the year.

Here is a summary of the key cash flow and capital investment figures for the fiscal year 2025:

R&D and SG&A expenses to support global operations

Research and Development (R&D) is critical for Plexus Corp.'s value proposition in design and development services, but it is not separately itemized in the condensed statement of operations provided. It is aggregated within the operating expenses, alongside SG&A. The total Operating Income was $202,371 thousand on revenue of $4,032,966 thousand. The SG&A portion alone was $199,460 thousand for the year. The company also incurred $4,683 thousand in restructuring and other charges, net, during fiscal 2025. The ability to maintain a 5.9% non-GAAP operating margin while supporting global operations and R&D is a key focus area.

You should definitely keep an eye on the guidance for the next period, as the company initiated fiscal first quarter 2026 revenue guidance between $1.050 billion and $1.090 billion, with planned capital expenditures between $90 million and $110 million for the full fiscal year 2026.

Finance: draft 13-week cash view by Friday.

Plexus Corp. (PLXS) - Canvas Business Model: Revenue Streams

You're looking at the core ways Plexus Corp. converts its operational capabilities into dollars as of late 2025. The foundation here is clear: Plexus is fundamentally a manufacturing and assembly services provider, but the value-added services are increasingly important for margin health.

Primary revenue from manufacturing and assembly services remains the largest component. This is the bread and butter of their business, taking designs and producing complex electronic assemblies for their customers. The pipeline for this core service looks strong based on new business awards. For the full fiscal year 2025, the team generated 141 manufacturing wins, which translates to an estimated $941 million in annualized revenue once those programs are fully ramped into production. This volume of wins is specifically cited as supporting revenue growth exceeding that of their end markets for the year. The fourth quarter alone saw 28 new manufacturing programs secured, representing $274 million in annualized revenue potential.

The second major stream comes from revenue from value-added engineering and design services. While these engagements are a smaller piece of the overall revenue mix, they are crucial for profitability. The company successfully drove increased wins in engineering solutions throughout fiscal 2025, diversifying its revenue base. To be fair, engineering services are already performing at margins well above the corporate targets, which helps lift the overall profitability profile.

The third service-oriented stream is revenue from sustaining and aftermarket services (repair, maintenance). This area also saw success, with the Sustaining Services team achieving record wins for the fiscal year, positioning this offering for stronger future financial performance. These services often provide more stable, recurring revenue compared to initial large-scale manufacturing ramps.

The top-line result for the entire operation is substantial. Net sales totaled $4.033 billion for the full fiscal year 2025, representing an increase of 1.8% from fiscal 2024. This top-line figure is supported by robust operational execution across the board.

Here's a quick look at the key financial results anchoring these revenue streams for the full fiscal year 2025:

Finally, you can't ignore the income generated from efficient working capital management, definitely a key focus. This isn't direct sales revenue, but it directly impacts cash flow and financial health, which is a key part of the business model. Management highlighted significant progress here. The fiscal fourth quarter cash cycle clocked in at 63 days, which was the best result delivered in the past five years. This efficiency, combined with strong operating performance, resulted in a fiscal 2025 Return on Invested Capital (ROIC) of 14.6%, exceeding the weighted average cost of capital (WACC) of 8.9% by 570 basis points. This disciplined approach to capital management produced $154.0 million in free cash flow for the full fiscal year 2025, well above projections.

You can see the strategic focus in the service wins:

• Primary revenue driver: Manufacturing & Assembly.
• Margin enhancer: Value-added Engineering Services.
• Recurring revenue base: Sustaining & Aftermarket Services.
• Cash generation lever: Working Capital Optimization.

Finance: draft 13-week cash view by Friday.